Boeing reported a second-quarter loss of $280 million related to its contract for two new Air Force One aircraft, which are now expected to be delivered in 2028, years behind the original 2024 deadline. The overall net loss for Boeing was $428 million, an improvement from the previous year's $612 million loss. The company has incurred approximately $2.8 billion in losses on the Air Force One program since the contract was signed in 2018, primarily due to fixed-price contract terms which have led to cost overruns. Boeing's commercial aircraft deliveries increased by 14% year-over-year.

Boeing Lost Another $280 Million Last Quarter On Overdue Air Force One

By Suzanne Rowan Kelleher,

Forbes Staff.

Suzanne Rowan Kelleher covers travel for Forbes.

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Jul 28, 2026, 11:33am EDT

Topline

Boeing has racked up a $280 million second-quarter loss on its government contract to deliver two new Air Force One presidential aircraft, the company said in its latest earnings report, becoming a cautionary tale for companies tempted by fixed-price government contracts.

President Donald Trump stands near Air Force One before his first flight aboard the Boeing 747-8 gifted by Qatar. (Photo by SAUL LOEB)

AFP via Getty Images

Key Facts

The project is years behind schedule, having missed its original 2024 delivery, and is now on track to make the first delivery in 2028.

Boeing’s overall second-quarter net loss of $428 million is less than the $612 million loss it posted a year ago.

Boeing’s commercial aircraft deliveries rose 14% year over year, from 150 planes in the second quarter of 2025 to 171 in 2026.

Big Number

$2.8 billion. That’s how much Boeing has likely lost on the Air Force One program since signing the government contract in 2018, Aviation Week reported.

Why Is Boeing Losing Money On Its Air Force One Contract?

In 2018, Boeing agreed to build two new Air Force One jets for about $3.9 billion under a fixed-price contract, which means Boeing—not the U.S. government—absorbs most cost overruns. The presidential aircraft is more complex than any commercial jet, as it must be transformed into a flying White House with secure global communications, missile-defense systems, aerial refueling capability, hardened wiring systems and more. Several years later, Boeing’s then-CEO Dave Calhoun said the company “ probably shouldn’t have taken” the fixed-price contract. On Tuesday, Boeing said this quarter’s $280 million overrun reflects “additional production and certification resources” as it works to keep the program on track for a 2028 delivery. But Boeing executives believe the costs will continue to spiral. “I do expect to see some cost growth there as we come through [final assembly] and we finish off the wiring and the structures, as well as finishing off with certification,” Steve Parker, the head of Boeing’s defense unit, told reporters at Farnborough Airshow this month. Back when the contract was awarded, the U.S. Air Force said the deal was “saving the taxpayers over $1.4 billion.”

Tangent

Last year, President Donald Trump accepted a Boeing 747 presidential aircraft worth $400 million from Qatar, whose prime minister insisted was not a bribe but a “normal thing between allies.” This month, Trump briefly ditched the Qatari jet to fly from Turkey to the U.K. on the old Air Force One due to security concerns—and then switched back to the Qatari plane on his return flight to Andrews Air Force base. Weeks later, Trump said the Qatari jet would get another security upgrade. All told, renovating the Qatari jet will cost taxpayers nearly $1 billion, according to recent estimates. After Trump leaves office, the jet will be transferred to his future presidential library.

Overdue Air Force One Has Cost Boeing $2.8 Billion So Far

Boeing Lost Another $280 Million Last Quarter On Overdue Air Force One

Topline

Key Facts

Big Number

Why Is Boeing Losing Money On Its Air Force One Contract?

Tangent

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